Unparalleled combination of award-winning graphics and multimedia technology enables consumers to Experience More

MARKHAM, Ontario/ Munich, Germany - October 13, 2004 - ATI Technologies Inc. (TSX: ATY, NASDAQ: ATYT) today announced support for the new Microsoft Windows XP Media Center Edition 2005, which was unveiled today. ATI has leveraged years of expertise in the consumer electronics market to offer industry leading hardware and software technologies that complement Microsoft's digital entertainment centerpiece. ATI has a solution to match the graphics and multimedia needs of every Windows XP Media Center Edition 2005 system including graphics and video processors, key software technologies, high definition television cards, integrated platform solutions, mobile graphics solutions and Media Center Extender for Windows XP Media Center Edition 2005 solutions. Additionally, ATI offers dedicated support and resources for PC builders and system integrators supporting Media Center Edition 2005 systems.

With PCs running Windows XP Media Center Edition 2005, consumers get the best version of Windows for the home that offers the capabilities of a Windows XP-based PC with exciting new experiences for music, digital photography, movies, television and more.

"We're thrilled to see the breadth of ATI's support for Windows XP Media Center Edition 2005 across its product line," said Kevin Unangst, Director of Windows consumer marketing at Microsoft Corp. "ATI's hardware and software technology and Windows XP Media Center 2005 gives system integrators and consumers the ability to experience more digital entertainment than ever before."

ATI's products are currently enjoyed by Media Center Edition customers in the following systems: Alienware, Dell, Evesham Technology, Fujitsu Siemens Computers, Gateway, Hi-Grade, HP, iBUYPOWER, Mesh Computers Plc., NEC, Niveus Media, Northgate, Packard Bell, Shuttle, Time, Touch Systems, ZT Group, and more.

"Microsoft has created the quintessential digital entertainment hub with Windows XP Media Center 2005, and delivering that high quality entertainment is easy on ATI's award-winning, best-in-class hardware and software," said Rick Bergman, Senior Vice President and General Manager, PC Business Unit, ATI Technologies Inc. "ATI has the broadest breadth of product support for Media Center Edition 2005 - amazing graphics, high-quality video, HDTV products, Media Center Extender support, software support, mobile and integrated products and much more - to enable customers to experience more."

ATI's amazing RADEON® X800 industry-recognized graphics cards, and X700, X600 and X300 graphics cards provide affordable performance to the new target market of PC home entertainment consumers. ATI's multimedia products such as HDTV WONDER(tm), THEATER(tm) 550 PRO video processor and eHOME WONDER(tm) are all well designed for Media Center Edition 2005. ATI's RADEON family of Integrated Graphics Processors (IGP) has the best power and features to run Media Center Edition 2005 smoothly in low-cost systems.

Many ATI graphics and TV products are certified for the Microsoft Windows XP Media Center Edition logo program. These additional Windows XP Media Center Edition technical requirements are designed by Microsoft to enable consumers and partners to make more informed decisions for PC purchases. For a complete list, visit http://www.ati.com/mce2005.

ATI has updated its ATI Channel Partner Program with an ATI evaluation kit designed for Microsoft Windows XP Media Center Edition 2005. These kits are "one-stop solutions" for trial systems of Media Center Edition-ready PCs backed by ATI's industry-leading graphics and industry-leading dedicated direct support for all system integrators through membership with the ATI Channel Partner Program. For more information and to register with the ATI Channel Partner Program, visit http://www.ati.com/partnerprogram/index.html

ATI has the breadth of solutions that Microsoft Windows XP Media Center Edition 2005 requires: digital and analog TV tuner cards, graphics cards, and complementary software solutions. Based on ATI's award winning TV-on-the-PC technology, ATI's eHOME WONDER is a hardware-based low profile PCI TV solution that features hardware MPEG-2 encoding allowing PC manufacturers to support Windows XP Media Center Edition 2005 across multiple processor platforms. An optional FM tuner is also available on the eHOME WONDER.

About ATI Technologies
ATI Technologies Inc. is a world leader in the design and manufacture of innovative 3D graphics and digital media silicon solutions. An industry pioneer since 1985, ATI is the world's foremost visual processor unit (VPU) provider and is dedicated to deliver leading-edge performance solutions for the full range of PC and Mac desktop and notebook platforms, workstation, set-top and digital television, game console and handheld markets. With 2004 revenues of US $2 billion, ATI has more than 2,700 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).